The flying capacity expansion of wind power equipment manufacturers in recent years has caused increasingly intense competition; in 2011, Chinese wind power equipment manufacturers witnessed decline in profit to varying degrees.
Among equipment manufacturers, in 2011, Goldwind Science & Technology Co., Ltd. reached net income of RMB607 million, a YoY decline of 73.5%; Sinovel Wind Group’s net income dropped 72.8% YoY to RMB776 million. As for wind power equipment parts manufacturers, wind turbine blade maker Sinoma Science & Technology Co., Ltd. realized net income of RMB121 million in 2011, down 31.7% YoY.
Not just Chinese manufacturers, global wind power equipment manufacturers were barely satisfactory in terms of performance for 2011. For example, VESTAS, the world’s largest wind power equipment maker, faced net loss of €166 million in FY2011, the first annual loss since 2005.
Confronted with such a situation, Chinese wind power equipment companies have made strategic adjustments to improve corporate performance, mainly through two ways. First, to transfer from only focusing on equipment installation quantity to increasing R&D investment and supporting the projects with higher gross margin. Sinovel Wind Group, for example, improved R&D investment in large-capacity wind turbine generators; currently, its 3MW, 5MW and 6MW large-capacity units have witnessed a substantially enhanced proportion in the order structure. Second, to actively expand overseas markets.
China Wind Power Equipment and Parts Industry Report, 2011-2012 mainly covers the following content:
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Offshore WIND staff, May 28, 2012